The Korean economy faced a severe financial and currency crisis in November 1997 and started an IMF program in early December 1997. It fell into a deep recession, with real GDP contracting 6.7 percent in 1998. The economy started a rapid recovery in late 1998, with growth rates of 10.7 percent in 1999 and 8.8 percent in 2000 (Table 1). But the economy started to slow in late 2000, and by mid-2001 a recession appeared likely. Thus, the Korean economy has gone through a full cycle since the 1997 crisis.